A budget deficit occurs when tax revenues are less than government spending.
Answer the following statement true (T) or false (F)
True
A budget deficit is the amount by which government spending exceeds government revenue in a given time period.
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Of the following, which is the best example of good with a perfectly inelastic demand?
A) the demand for gasoline B) the demand for tickets in New York City when the Mets or Yankees are in the World Series C) the demand for a college education by a student who has a full scholarship to an Ivy League school D) a diabetic's demand for insulin
If a town has a monopsony, this means:
a. there is only one employer. b. price discrimination takes place. c. goods are priced too high. d. no unions can exist. e. excess profits are being made
An expansionary monetary policy is most likely to produce an inflationary effect with little impact on output when the economy
a. is near full employment and the short-run aggregate supply curve is flat. b. is near full employment and the short-run aggregate supply curve is steep. c. has substantial unemployment and the short-run aggregate supply curve is steep. d. has substantial unemployment and the short-run aggregate supply curve is flat.
An indifference curve shows:
A. The maximum combinations of two products which a consumer can afford to buy, given prices and the consumer's income B. The quantities of two products a consumer is willing to buy at different income levels C. All combinations of two products from which the consumer derives a specific level of total utility D. Combinations of two products which yield the same marginal utilities